The Analysis of How Asymmetric Information Problems Affect Economic Behavior

question 35

Multiple Choice

The analysis of how asymmetric information problems affect economic behavior is called ________ theory.

• A)uneven
• B)parallel
• C)principal
• D)agency

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Definitions:

Hasty Generalization

Drawing a broad conclusion from a small sample or isolated instances.

Accident Fallacy

Refers to a logical fallacy that involves applying a general rule to a specific case it does not apply to, often leading to erroneous conclusions.

Slippery Slope Argument

A logical fallacy that assumes a relatively small first step will lead to a chain of related events culminating in some significant effect, often negative.

Consequences

The results or outcomes that naturally follow from a person's actions or a set of circumstances.